A billion. I did not say that, jim. Youre my hero. You know that. Mark haynes introducing cramer for the first time here. The first time on cnbc. Oh, i loved them. This the networks 25th anniversary. Well bring you highlights later in the morning. Welcome to squawk on the street. Im Carl Quintanilla with jim. Faber is up town at the nasdaq today. Hell bring us key interviews including Morgan Stanleys james goreman later on. Massive day for earnings. Big cap banks, industrials, tech, s p on track for the best week since july. Dragged down, though, in part by ibm today. The tenyear yield crept up to 2. 66. Claims up just a touch. Europe hanging on to some gains before the long weekend the road map will go like this. Earnings, lots of earnings. The blue chips, goldman sachs, Morgan Stanley, am mex and ge beating expectations. Google and ibm reporting quarters that were disappointing. Pepsi profit and revenue ahead of expectations. Chipotle, mixed quarter, missing estimates but revenue beating. Another big day for ipos. David will kick things off from the nasdaq with the first on cnbc interview with the chairman of weibo. First off well kick it off with the barrage of blue chip earnings. Goldman sachs, Morgan Stanley, both beating estimates. Tackle the banks first here. Everyone wants to talk about Morgan Stanley being best in class. Morgan stanley did theres lines. No one thought the fixed income trading anyone was going to do well. Gorman did incredibly well. This was the quarter everyone was hoping from each one of these firms and then they all kind of no one could make that much money in that end. Gorman did. Shot the lights out. People will like that because thats the kind of business we remember as where theres big margins, but lets not goldman, Investment Banking good, equity offerings, someone is making money, they are. M and a, goldman had a good line. Everybody had something good to say. Its funny, i know im picking on these guys and theyre not happy and emailing me already, anticipating, al go rhythmic mind, jpmorgan is now went from being the Gold Standard to being the copper standard, brass standard, aluminum standard. It made everybody look good. The gift that made every firm look good. Everybody beat them on a line. Everyone points to trading, down 21 at jpmorgan, up double digit at Morgan Stanley. Yeah. That will be interesting to talk to mr. Gorman. He has been looking for consistency in earnings, for some time. Still talks about it being in a process at this point they are far from done with, of course, trying to get return on equity in all their businesses including Global Wealth management as well which has become such an important platform for them. It is interesting, isnt it, how fixed income currency and commodities can be so different for different firms and we go back to jpmorgan as jim just did and we have at least some questions, jim, in terms of execution, terms of management focus, that we did not see raised with the likes of goldman and certainly with Morgan Stanley. No. Frankly, just mystified. Having worked on these desks, typically someone midquarter said were just doing awful here. We have to change up. We have to do something different. It was rudderless and i know that this bank had tremendous pressure. When you take a look at bank of america, they havent even really dealt yet with the Justice Department problem. Jamie dimon, what i now feel, i feel jamie dimon was more hands on than i realized. Im sure they will disagree with that. They disagree with anything youre negative on. In the end this is an empirical business. They got the l, Morgan Stanley got the w. You want to cover industrials. Tackle ge, back to form by beating by a penny after a couple of inline quarters. Revenue a bit slight. Industrial revenue up 8, industrial profit up 12. Ge, you used the word industrial three times. You know what, when was the last time we thought of ge as an industrial. Better start thinking of it now. Aerospace, oil and gas, power, these were extraordinary and this is the breakout quarter ive been waiting for. Jeff immelt is not going anywhere after he puts this kind of quarter. This what is were thinking one day they raise the Gross Margins, they raise it big on industri industrial. Listen half a basis, half an Interest Rate point to use the language people at home know. I have to tell you, carl, we all felt at a certain point it would get out from under the shadow of finance. They did it this quarter. This was the only line that i didnt like was health care and no longer that big transportation a bit weak. Those are noisy from quarter to quarter. Exactly. Lumpy. And theres lumpy orders for aerospa aerospace. The growth areas of the economy are aerospace and oil and gas. Unless boeing were to buy schlumberger right now you have the two parts of the economy that are on fire and ge will dominate. David, ge capital earnings flat. Some people still argue that that separation and divorce cant happen fast enough. Yeah. Although it still could be a difficult one to accomplish in terms of at least the multiple that would get were it to be spratsds fully would probably be far lower than the multiple it receives as a part of ge. Thats always been a question mark. Certainly we know carl, over the last couple years without a doubt, they have reduced the size of that unit significantly and that seems to be part of the strategy. Not that it isnt a contributor and important one and not that by the way it cant add a great deal to the bottom line when things are good, but certainly we know the volatility is most likely not something they want to see in the future and hey, it was only five years ago the stock was below 6 a share. I know. Due almost solely to concerns about ge capital. Of course at one point ge almost couldnt roll its commercial paper in october of 2008. That was pretty concerning to. One of those highlights well be looking at later on in the day. Maybe get emmerson mobile. I used to talk to jeff immelt one times you will get 18 times multiple if you get rid of the finance. You have a bank multiple. Goldman sachs is trading like just slightly above book. Goldman when it was private was considered to be just on fire. The multiple at goldman is so low, the multiple at ge will go higher, david. Right. Whats worth paying for at goldman. You know, given what weve been through and it still were talking 25 years today, go back five, whats it worth paying for a financial because we dont really know its there. One two times book. I know. Lets get to some of the tech stories. Googles First Quarter revenue did fall short of targets. Stock will trade lower in the premarket. Ibm reporting its lowest quarterly revenue in five years as hardware sales fall on google, costs, r and d 31 year over year as they move into areas not part of the core google business. Im going to give you a wrap on google. First the stock was down 35 points at one point. The dilemma people face, portfolio managers, in the trenches every day. They look at this number and realize google doesnt help your model. The analysts werent able to model correctly. Really good people like jordan rohan, bob peck at suntrust, guys i trust. However suntrust keeps a buy on it. The growth in google is 19 . The multiple is roughly 19. 17 on next years numbers. Bristol myers 14 growth, 27 p e. Chipotle, later, 22 growth, 44 p e. Pane panera. This is an algebra question. If you guess 19 growth, how can you not pay well at least 30 times earnings . Cocacola here cocacola has 6. 7, pepsi claiming 7, and cocacola sales at the same p e as google. How is that possible . Google is going higher. I said it. Multiple of google is going much higher. In the next two weeks. My travel trust tried to buy some last night. Its going much higher. Extraordinary quarter. The analysts dont know how to analyze it. This will be the quarter, by the way, they are going to get you, mark my words, they are going to get you more dollars per ad on a mobile phone than they are desk top. This was the quarter. He basically said listen, guys, Everyone Wants it on their cell phone. Get the 5. 1, 5. 6 inch factor, Everyone Wants their cell phone and if they want it, google will control it. I would just buy it. Just buy it. On ibm, guys, 2. 54 was in line lower than expected tax rate, obviously lower share count, thats going to take 50 points off the dow this morning. Thats going to be down as we see perhaps as much as 5 . Its interesting ive been trying to get to understand this company over the last few weeks. Carl talking to a number of hedge fund managers. The conversation always ends up being, i was short it, i might get short it, ive been short it, staying short it, ive covered. Nobody ever talks about buying this thing. The concern, of course, has been with the transformation that it is taking place under current ceo jen my ra metty and whether or not that is something that is going to be successful. Important year for the company. Read the annual report. All they are talking about is big data and an lytics, cloud computing, security, social, mobile, all those things we hear about from so Many Companies but ibm is doing it. Its just how quickly can they get away from the old hardware business. Dont forget all the divestitures that have taken place including the lowend server business that will soon close. The sale to lenovo. So much going on, but talking 450,000 employees. Buy that one too. This is one enormous company. Buy ibm. Buy ge, buy ibm. Warren buffet loves it. Buyback for real. Second half going to be stronger. This is the transition quarter. Read the canopies. You sound like cantor today. I dont like it either. But you have to buy it. What did you eat something this morning . Whats going on with you . I had on the right side of the bed. No. I had i didnt even have my granola, julie didnt send me the granola you promised me. More about those companies. Also chipotle and pepsi later today. When we come back dubbed the twitter of china, weibo begins trading at the nasdaq today. Well talk to the companys chairman after the break. Also ahead, an exclusive with the chairman an ceo of Morgan Stanley, james gorman. You did not want to miss that. Nice hat trick for the Investment Banking business. Futures trying to get out of the red with the anchor of ibm. More squawk on the street live from post nine in just a minute. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. The chinese micro blogging site weibo is going public today. Priced at 17 a share. That was at the low end of its range and also reduced the size of the overall offering. Joining us first on cnbc, charles chao, the chairman of weibo. Nice to have you here. Thank you. You brought i dont know if we can show it, you brought quite a crowd, a lot of people coming from china. Exciting day im sure. Yeah. Charles, speaking to some of the people who may have seen you on the road show or know the company, their main concern they expressed was one of user engagement. Right. The growth rates for which have been slowing and there is concern there. Address that concern for me when some would say, i just cant get a sense of future growth because im concerned that user growth is slowing and engagement is slowing. Right. I think its a general concern on the road and we understand the concern and if you look at our history, i mean we only have been in this market for more than 4 1 2 years. And we have grown very, very rapidly in the first two, three years. Partly because we were the first sort of the social media kind of product in china on the mobile and they make us very, very powerful, popular in china, but on the other hand, there was no competition from the beginning. But and as competition becomes more intensified, naturally there will be some kind of dilution in the market in the usage. Were not talking only about social products from other than mobile app, but also as a product on mobile app, gaming and video, so inevitable that our kind of market share. So we did see some slowing down in terms of growth rate last year. But as we begin to refocus our purpose, our effort, on the user growth, actually we see tremendous coming back in terms of the growth rate. I mean if you look at a number in the First Quarter, it was a big jump. Right. And we see the momentum going as long as we can execute our strategy right. If you look at entire market in china we are big, but only account for probably 25 mau on the mobile internet. Monthly average use spheres right. But if you look at mobile mau in china for the internet, right now, but entire Addressable Market is 1 billion. There is a lot of room to grow basically. And there is competition now. We always in the states like to compare whatever company it is to a company here. Sure. Weibo is the twitter of china. Right. Is that a fair comparison . Well, to some degree. I mean theres a lot of similarities between these two products in terms of functionality and a lot of things. But also a lot of differences. For example, from the very beginning, we support multimedia. From the beginning we actually i mean incorporate long form content actually into our platform and also i mean, our features are different. Were not only allowing people to post, reposting, but also allow people to make a comment liking something and also make a comment when they repost. So make our product much more engaged, much more conversation. It is in some ways a much more product, and allow content because its more international multimedia, and i think this is i will say that its similar but i think we are probably more so in terms of, you know, the diversification of the usage basically. In your filing you describe weibo as combining public expression and powerful platform for social expression. Public social expression and china and the government and censorship, some told me wee po was a robust platform, the tragic train accident of a few years ago. Sure. And the government may have curbed that selfexpression and that may have hurt weibo. Is that true and is that something that investors should be concerned about in the future when it comes to china and the prc and regulatory authorities . Sure. I think theres a general perception here that theres a lot of control of content out of censorship here. I mean granted, i mean i think theres a degree of content control in china but this is true for any other countries except i mean maybe you probably will apply different kind of law, the regulation might be different, and there is no exception in china. If you look at weibo at history or Chinese Media history, in general i think it has been growing very fast and also, in general, it is a very free platform. I mean especially the first platform for Chinese People not only to express themselves, they can anythi they can publish ag they want and dispute anything they want. Our platform is to understand the market and how to comply with the local law so we can actually move this platform more effectively within the market and so i dont think i mean theres major things people should be worried about. Final question. Alibaba is going on 30 of this company. Likely at some point alibaba would want to own all of weibo . Thats probably not question for me and currently, after this ipo, still controlling Share Holding position and have power, control its entity and we believe that a lot of synergies between these two platforms, weibo and alibaba, essentially it is a huge ecommerce ecosystem in china and social and mobile platform and together we can do a lot of things in the mobile internet stage and we try to create a mobile social ecommerce kind of ecosystem together in china and i think theres a lot of potential behind it. Chao, got to leave it there. Thank you. Good luck today. Well be watching closely as weibo opens for trading. Another chinese internet company, if you will. Charles chao joining us, chairman of weibo. Back to you. Thank you. When we come back cramers mad dash, count down to the opening bell on the final trading day of the week. Futures as the market absorbs earnings from goldman, Morgan Stanley, pepsi, ge, american express, dupont, you name it. Were back in a minute. 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They got 3 growth worldwide in volume. Volume is not off a cliff. I think pepco decided were not just going to put out a lot of soda and lose money. Theyre far more oriented toward the Gross Margins were good. China is a different picture because theres problems with a partner. This was a quarter that give you enough to say i know nelso